Tongaat gets green light by Namibia for its packaging sale
DURBAN – Tongaat Hulett said on Thursday that the Namibian Competition Commission had given the sale of its sugar packaging and distribution business to Bokomo Namibia a go-ahead after the proposed transaction met all the suspensive conditions.
This comes after the agriculture and agri-processing business entered into a sale agreement with Bokomo in November last year to sell its 51 percent stake in the business for R220 million, with the proceeds from the sale expected to reduce the group’s debt of around R13 billion.
Tongaat said on Thursday that the proposed transaction was subject to suspensive conditions, the last of which was the Namibian Competition Commission approving the transaction.
“Shareholders are advised that all the suspensive conditions have now been fulfilled. In terms of the sale agreement, the effective transfer of the business arises with effect from July 1, 2020, and the purchase consideration of R220m was settled on July 1,” the group said.
Tongaat said last year that it wanted to cut its debt by R8.1bn by March 2021 and selling non-core assets and core assets will enable the group to achieve this target.
The asset disposal has gathered steam under the chief executive Gavin Hudson, and last month Tongaat also announced the sale of Tambankulu Estates to Eswatini’s Public Service Pensions Fund for R375m in a share purchase agreement.
Tambankulu, which the group acquired in 1998, is an agri-business that consists of 3 767 hectares of fully irrigated land under sugar cane producing 62 000 tons of sucrose a year.
Tongaat shares closed 0.37 percent higher at R5.40 on the JSE on Thursday.